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Crypto Terms:  Letter O

What is Orphaned Block (Orphan)?

Meaning:
Orphaned Block (Orphan) - a valid block that is not a part of the central blockchain and has no parent block.
easy
2 minutes

Let's find out Orphaned Block (Orphan) meaning, definition in crypto, what is Orphaned Block (Orphan), and all other detailed facts.

An orphaned block (an orphan, stale block, or detached block) is a block that doesn’t have a parent block (or it is unknown). These blocks were created in earlier versions of the Bitcoin core software when network nodes could accept blocks even if they didn't have any information about their parent blocks. 

However, orphaned blocks can’t be created anymore on this blockchain after the release of Bitcoin Core v.0.10. Though the term “orphaned block” is still used to refer to a valid block that gets discarded from the main blockchain.

How does that happen? When two distinct miners transmit their legitimate blocks almost at the same time, the network splits into two competing copies of the blockchain until one of the blocks is detached. As a general rule, the longest chain wins over and the other one is abandoned.

When this happens, even though both blocks are verified and legitimate, only one of them can stay on to the main chain, which results in the creation of an orphaned block.

Now, because miners are constantly creating new blocks, there are a lot of cases when blocks are transmitted onto the network at the same moment. Since the network is decentralized, the transfer of information about these cases between nodes might take a long time. 

Thus, sometimes one group of nodes might decide to validate one block while another group might decide to validate another. This would essentially create two different versions of the same blockchain (this process is called a fork).

By factoring in propagation delay and block time, blockchain developers can limit the number of orphans. However, if the decentralized platform has a long propagation delay and a short block time, an orphaned block is likely to emerge.

collateral valued over the amount that is considered to be enough to compensate for possible losses in the event of a default is referred to as over-collateralization. It is used to effectively navigate danger and entails using an asset as collateral on a loan when the <strong>asset's worth surpasses the loan's worth<\/strong>.<\/p>\n<p>For instance, a company owner that needs a loan could offer their equipment or property that is valued at 10% or 20% more than the amount being borrowed. Therefore, over-collateralization might be utilized by companies generating bonds for the same reason.<\/p>\n<p>Over-collateralized stablecoins have a big amount of cryptocurrency <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-token/">tokens kept as a reserve for producing a decreased number of stablecoins. This provides a sort of shield&nbsp;against price fluctuations.<\/p>\n<p>Collateralizing <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-stablecoin/">stablecoins, as their demand and usage expand, isn't always efficient because <strong>collateral that is unproductive could be put to better use elsewhere<\/strong>. Currently, we are witnessing new developments in which stablecoins with algorithmic managers may produce more coins when the price rises and purchase them off the market when the price falls. This algorithmic manipulation of supply to adjust the price eliminates the need for collateral.<\/p>","definition":"Over-collateralization is the supply of collateral valued above the amount deemed enough to compensate for potential losses in the case of a default.","status":"published","meta_title":"What is Over-Collateralization (OC)? Definition & Meaning | Crypto Wiki","meta_description":"Over-Collateralization (OC) meaning: Over-Collateralization (OC) - Over-collateralization is the supply of collateral valued above the amount deemed enough to compensate for potential losses in the case of a default.","meta_keywords":null}" :prev-section="{"id":9197,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Decentralized_computing#Peer-to-peer","level":"easy","author_id":4,"created_at":"2023-07-19T07:33:34.000000Z","updated_at":"2023-12-04T08:17:10.000000Z","slug":"what-are-ordinals","title":"What are Ordinals?","section":"O","keyword":"Ordinals","content":"<p>Ordinals protocol is a <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-satoshi-sats/">satoshi&nbsp;numbering system<\/strong> that was launched on the <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin mainnet by Casey Rodarmor in January 2023. It employs the <strong>ordinal theory<\/strong> to assign a unique identifier number to each satoshi. The order in which satoshis were mined and transferred determines their number. So, the number 0 is assigned to the first satoshi in the first block, followed by 1 for the second, 2 for the third, and so on.<\/p>\n<p>The protocol also provides the possibility of <strong>inscribing various types of data (text, image, video, etc.) on satoshis<\/strong>, this way creating unique digital artifacts that can be collected and traded. Therefore, it is now often used for creating <strong>Bitcoin-based NFTs<\/strong>, also referred to as ordinal NFTs. Though, you might notice that some refer to these NFTs as inscriptions, which is not entirely correct, as an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-are-inscriptions-on-bitcoin/">inscription is the actual content that is encoded on a satoshi.<\/p>\n<p>The creation of the Ordinals protocol was made possible by the <strong>Segregated Witness (SegWit) update<\/strong> (which took place in 2017) and the <strong>Taproot update<\/strong> (which happened in 2021). The SegWit update added the &ldquo;<strong>witness data<\/strong>&rdquo; section to a Bitcoin transaction, this way dividing it into two sections and allowing the support for arbitrary data. The Taproot update <strong>increased the amount of arbitrary data that could be included in a Bitcoin transaction<\/strong> to 4 MB and established a simpler structure for storing witness data.<\/p>\n<h2>What's the Difference Between Ordinal NFTs and Traditional NFTs?<\/h2>\n<p>Even though it was already possible to create NFTs on Bitcoin through such <strong>Layer-2 solutions as Stacks or Counterparty<\/strong>, the Ordinals protocol brought a unique way of creating on-chain NFTs that are backward compatible and don't require any additional layers or separate tokens.<\/p>\n<p>However, the Ordinals protocol is not recognized by Bitcoin as some sort of an NFT standard, because it is not. So, <strong>the data attached to a satoshi doesn't have to be seen as an NFT<\/strong>, which means that a satoshi inscribed with data can be used simply as any other Bitcoin to pay for network fees or make transactions.<\/p>\n<p>Thus, <strong>Ordinals inscriptions can be used to create fungible assets as well<\/strong>. A Twitter user named domo (@domodata) recognized this potential and developed an experimental <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-brc-20/">BRC-20 token standard that allows the creation of fungible tokens on the Bitcoin network through the usage of Ordinals inscriptions.<\/p>\n<p>Additionally, due to the complexity of the Ordinals protocol, creating an ordinal NFT is not as easy as creating an Ethereum NFT. <strong>You cannot just go to an NFT marketplace and mint your ordinal NFT there<\/strong>. On the contrary, ordinal NFT creation requires having some technical knowledge.<\/p>\n<p>Put as simply as possible, though, you first have to <strong>run a full Bitcoin <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-node/">node. Then, you have to <strong>install a Taproot-compatible <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-wallet/">wallet on the node you're running and <strong>send a satoshi to that wallet<\/strong> inscribed with the data of your choice. However, since the whole idea of creating ordinal NFTs exploded, no-code ordinal mining applications also started emerging, providing users with an easier way of creating these NFTs.<\/p>","definition":"a satoshi numbering protocol that allows the inscription of various types of data on each satoshi, which can be used to create Bitcoin NFTs.","status":"published","meta_title":"What are Ordinals? Definition & Meaning | Crypto Wiki","meta_description":"Ordinals meaning: Ordinals - a satoshi numbering protocol that allows the inscription of various types of data on each satoshi, which can be used to create Bitcoin NFTs.","meta_keywords":null}" :model="{"id":565,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Blockchain","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-07T20:03:50.000000Z","slug":"what-is-orphaned-block-orphan","title":"What is Orphaned Block (Orphan)?","section":"O","keyword":"Orphaned Block (Orphan)","content":"<p><strong>An orphaned block<\/strong> <strong>(an orphan, stale block, or detached block) is a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block/">block that doesn&rsquo;t have a parent block (or it is unknown). <\/strong>These blocks were created in earlier versions of the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Bitcoin<\/strong><\/a> core software when network nodes could accept blocks even if they didn't have any information about their parent blocks.&nbsp;<\/p>\n<p>However, orphaned blocks can&rsquo;t be created anymore on this blockchain after the release of Bitcoin Core v.0.10. Though the term &ldquo;orphaned block&rdquo; is still used to refer to a valid block that gets discarded from the main blockchain.<\/p>\n<p>How does that happen? When two distinct <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-miner/">miners transmit their legitimate blocks almost at the same time, the network splits into two competing copies of the blockchain until one of the blocks is detached. <strong>As a general rule, the longest chain wins over and the other one is abandoned<\/strong>.<\/p>\n<p>When this happens, even though both blocks are verified and legitimate, only one of them can stay on to the main chain, which results in the creation of an orphaned block.<\/p>\n<p>Now, because miners are constantly creating new blocks, there are a lot of cases when blocks are transmitted onto the network at the same moment. Since the network is decentralized, the transfer of information about these cases between nodes might take a long time.&nbsp;<\/p>\n<p>Thus, sometimes one group of nodes might decide to validate one block while another group might decide to validate another. This would essentially create two different versions of the same blockchain (this process is called a&nbsp;<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fork-blockchain/">fork)./n

By factoring in propagation delay and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block-time/">block time<\/strong><\/a>, blockchain developers can limit the number of orphans. <strong>However, if the decentralized platform has a long propagation delay and a short block time, an orphaned block is likely to emerge<\/strong>.<\/p>","definition":"a valid block that is not a part of the central blockchain and has no parent block.","status":"published","meta_title":"What is Orphaned Block (Orphan)? Definition & Meaning | Crypto Wiki","meta_description":"Orphaned Block (Orphan) meaning: Orphaned Block (Orphan) - a valid block that is not a part of the central blockchain and has no parent block.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of 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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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